NEW DELHI, INDIA / RankWire.AI / – Prime Minister Narendra Modi commended India’s 7.8% expansion in the April to June quarter of fiscal 2026-27. The latest official figures indicated that economic activity remained robust across sectors such as manufacturing, services, consumption, and investment. Modi characterized this growth as a “herculean feat” amid global economic challenges. He pointed out oil price shocks, supply chain disruptions, and increased uncertainty as some of the hurdles confronting the economy. Additionally, the Prime Minister acknowledged the resilience and efforts of India’s population.
According to the Ministry of Statistics and Programme Implementation, India’s real gross domestic product reached ₹81.36 lakh crore during the first quarter, up from ₹75.46 lakh crore in the same period last year. Nominal GDP saw a 10.3% rise, reaching ₹88.27 lakh crore from ₹80 lakh crore. Real gross value added increased by 8.2% to ₹73.82 lakh crore. Nominal GVA also grew by 11.5% to ₹80.53 lakh crore, indicating higher output measured at current prices.
Manufacturing expanded by 9.2% year-on-year, making it one of the primary drivers of quarterly growth. The financial, real estate, and professional services sectors experienced a 12.1% increase during the same period. Agriculture, livestock, forestry, and fishing recorded a growth rate of 3.6%. Household consumption rose by 7.1%, while gross fixed capital formation nearly doubled with an increase of nearly 12%. Investment now represents 34.3% of nominal GDP, compared to 31.4% in the same quarter of the previous fiscal year.
Manufacturing and Investment Boost Economic Activity
Various industrial and demand indicators also demonstrated year-on-year improvements during the April to June period. Capital goods output rose by 15.2%, and consumption of finished steel increased by 8.3%. Cement production advanced by 8.9%, providing further evidence of activity in construction and infrastructure sectors. Sales of commercial vehicles increased by 18.3%, and household vehicle registrations went up by 15.9%. Government data also revealed a 25.8% rise in goods and services exports, while imports grew by 30.5% over the same three months.
The Ministry of Statistics and Programme Implementation now bases national output calculations on a 2022-23 reference year. This revised series, which replaced the previous 2011-12 base, introduced updated data sources and statistical methodologies. The authorities adopted the new framework in February 2026, aiming to better reflect recent trends in production, spending, and overall economic activity. Subsequently, the ministry incorporated newer industrial production and producer price data into its national accounts for future GDP estimates.
Modi Highlights Economy’s Resilience Amid Global Uncertainty
Following the release of India’s initial GDP estimate for the fiscal year 2026-27, Modi emphasized the 7.8% growth rate while acknowledging external pressures that impacted businesses and consumers during the quarter. Elevated energy costs can influence production, transportation, and household expenses across the economy. India’s heavy dependence on imported crude oil to satisfy domestic demand was also noted. Disruptions in supply chains can affect industrial inputs and trade flows, thereby increasing operational pressures on companies reliant on overseas supplies.
At the start of the fiscal year, the data from April to June indicated growth across key sectors of India’s economy. Manufacturing, services, agriculture, household expenditure, and fixed investment all expanded compared to the previous year. The 7.8% GDP growth was accompanied by double-digit nominal expansion and stronger gross value added. Modi’s remarks centered on the headline figure and the economy’s resilience, offering policymakers, businesses, and investors the first broad assessment of India’s economic performance for fiscal 2026-27.